OTIF in D365 F&O: Measure On‑Time In‑Full and Boost Procurement Performance
- Beau Schwieso
- May 5
- 3 min read
Dad joke warm‑up: My kids asked why I track how often they clean their rooms “on time and in full.” I told them it is simple economics—if the delivery is late or missing a sock, the allowance supply chain breaks.
OTIF 101: What Does It Even Mean?
On‑Time In‑Full (OTIF) is the percentage of orders a supplier delivers at the promised time and in the exact quantity the buyer ordered.
Formula:
OTIF % = (Number of POs delivered on the confirmed date and in full ÷ Total POs received) × 100Think of OTIF like your morning school‑bus run: showing up at 7:15 a.m. is useless if three kids are still at home, and arriving with everyone on board at 9 a.m. ruins first‑period math.
You need both timeliness and completeness.
Why OTIF Keeps Supply‑Chains (and CFOs) Sane
Pain if OTIF Tanks | Why You Should Care |
Stock‑outs & back orders | Missed sales, angry customers |
Rush freight & expediting fees | Margin erosion |
Production line stoppages | Overtime labor, waste |
Working‑capital bloat | Extra “just in case” inventory |
A 5‑point OTIF drop at a $200 M food distributor can snowball into six‑figure expediting costs and lost shelf space in a single quarter. Not exactly pocket change. MRPeasy
Where OTIF Lives in D365 F&O
Area | What You See | How to Get There |
Supply risk assessment workspace | OTIF tiles, vendor/Product drill‑downs, risk heat‑map | Procurement and sourcing > Workspaces > Supply risk assessment Microsoft Learn |
Vendor performance Power BI | Trend charts for OTIF, lead‑time variance | Requires Entity Store refresh |
Vendor scorecard reports | Printable PDF/Excel scorecards for quarterly reviews | Procurement and sourcing > Inquiries and reports > Vendor scorecards |
Setup tip: Turn on Assess supply risks to prevent supply‑chain disruptions in Feature management, then schedule the VendSupplyRiskCacheDataSet refresh so buyers are not chasing yesterday’s data. Microsoft Learn
Procurement’s Playbook for Managing OTIF
Define targets per category - A blanket 95 % goal sounds nice until you buy build‑to‑order machinery. Set thresholds that match reality.
Automate alerts - Use Alerts or Business events to ping buyers when OTIF on an active supplier slips below target.
Supplier collaboration portal - Let vendors see their own OTIF dashboard and upcoming POs in real time, reducing “Where’s my order?” e‑mails.
Root‑cause review - Combine OTIF data with quality holds, ASN timeliness, and transport lead‑time variance. One bad packaging spec can tank an otherwise solid OTIF score.
Dual‑sourcing & risk hedging - When a critical SKU’s OTIF dips, rerun MRP with approved alternate vendors to protect production.
Industry Snapshots
Industry | OTIF Headache | D365 Angle |
Food distribution | Expired inventory and spoilage | Pair OTIF with catch weight tracking and FEFO picking to keep the salsa fresh. |
Automotive OEM | Line‑side sequence misses | Kanban boards + vendor ASN accuracy deliver parts exactly when the robot arm needs them. |
Apparel & retail | Seasonal drops and promo launches | OTIF dashboards plus Allocation planning module ensure size‑color runs land before TikTok opens the floodgates. |
Quick‑Hit Best Practices
Start with 6 months of clean receipt data, because one bad migration can skew OTIF for weeks.
Tie OTIF to contract SLAs so under‑performance triggers automatic chargebacks or scorecard action plans.
Refresh Entity Store nightly or leverage Synapse Link for near‑real‑time visuals.
Gamify performance and publish a leaderboard and watch suppliers fight for gold status.
Try the OTIF Readiness Quiz
Do you measure delivery date against confirmed or requested dates?
How often is your data cache refreshed?
Can suppliers self‑service their OTIF score today?
Score three out of three and you are ready to brag at your next quarterly business review.
Sign‑off: If your supply chain were a video game, OTIF is the final boss. Manage the metric, and you unlock “Procurement Legend” status. Plus the CFO might even smile. Now get out there and level‑up those deliveries!
DynamicsDad
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